As we all continue to look for different solutions to saving money or getting the most out of our current technology, there are a few key actions a company can take to make the most of their resources and ultimately save money. Over the next few issues, David Mayberry of Go Communications Systems Ltd a networking hardware reseller will provide us with tips on saving money on our networking infrastructure. From the little things like asking for free delivery of networking hardware and purchasing refurbished to exploiting discounts and minimizing your maintenance costs, David gives a little insight into many different ways that a company can slim down and break through the current economic situation. In our first look into this, David covers outsourcing and whether it is beneficial or not.

Tip #1

Keep engineering resources in-houseOutsourcing works well in many areas of business activity, but I want to sound a note of caution. In fact, when I hear about companies taking their network management operations out of the safe hands of their experienced and committed in-house engineers and handing it to external providers, my blood runs cold.

Unfortunately, business owners and directors often focus too closely on the savings promised by network management outsourcing, while seriously underestimating the importance and value of reliability in their organisations’ IT networks, and the enormous damage that failures can cause.

Network downtime: a company-killer“I can’t get web access and I can’t check my emails. I might as well go home.” It’s a common complaint in today’s office, and it illustrates how dependent we have become on our company networks.

Ten years ago we would simply have turned to the phone and fax. For years, though, IT networks have been becoming steadily more important to companies of all types and sizes and for most organisations they are now absolutely key to all day-to-day operations. Downtime can mean service disruption, dissatisfied customers, irritated staff, regulatory compliance failure, and significant financial loss.

Company networks are no longer just important pieces of infrastructure. They have gone far beyond that. Today, a company’s network is its central nervous system. If it fails, the company is paralysed. If normal service isn’t restored quickly, the company dies. It’s that simple, and it’s that important.

PR fallout: it’s not prettyIn today’s online world, news – bad news, in particular – spreads brutally fast. If a major company’s network is down for even a few hours, we hear about it from bloggers, or even the media, almost immediately.

The longer the interruption to normal service persists, the more widespread is the bad publicity, the more serious the PR damage and the more customers who will simply go elsewhere, often permanently. Even if they don’t result directly in company failure, network outages do serious damage to company reputations.

Downtime is not the minor inconvenience it once was. It’s not just a matter of not being able to check emails or browse websites. It’s a potential company-killer.

Protecting your networkIn-house engineers’ jobs depend directly on their ability and commitment to maintain the company network in good order. That accountability for problems, poor performance and downtime is highly motivating, keeping the company’s interests at the top of their priority list: they will care far more deeply about the company’s success than any external specialist ever will. As a result they are the company’s best option to get the job done right, keep the network working effectively and efficiently, and rectify faults that do arise in short order.

Conversely, handing over responsibility for the ongoing management and maintenance of the network to unknown and untested individuals with no direct interest in the company’s well-being significantly increases the danger of network downtime, and the damage it inevitably causes.

Think before you outsourceFor businesses with in-house engineering resources, the temptation to cut costs by outsourcing should therefore generally be avoided.

That’s not to say that outsourcing is never the right option. Many businesses don’t have the resources at their disposal to effectively manage and maintain their networks. For such businesses, outsourced network management can be invaluable. But even in such cases, the business should employ at least a few engineers to work with the external team, acting as its eyes and ears, ensuring that the goals of the outsourcing exercise are actually delivered.

Businesses with skilled engineers on the payroll, though, have an enormous advantage. Those engineers are the best protection possible against costly, damaging, and potentially fatal network failures.

Think – very carefully – before outsourcing.

Tip#2

Check lead times before you specify
Hold on. Don’t order that part. At least, not just yet. The network component you’ve specified for a particular job may appear to be the right one for the job, but, please, check its availability before setting it in stone and making your project dependent on it.

Spikes and delays
The bad news is that unpredictable spikes in demand and manufacturing delays do occur, which push component lead times up. The good news, on the other hand, is that the components you’ve selected may well not be the only ones that can do the job. Often perfectly acceptable alternatives can be identified. By checking availability at the outset, you can specify components that are readily available, in preference to those which are not, taking into account any effects of the component changes as you go.

It is essential, though, to make such checks at the design stage of your project, before placing your hardware order. Changing project specifications later on is complex, expensive and time consuming. For large companies the problems are compounded as back-tracking through the authorization process consumes enormous amounts of time.

Indeed, the issue is no respecter of company size. Over the last ten years I have, on more occasions than I care to count, helped out even the largest service companies in the UK as they wrestled with it. Typically their usual supplier had been quoting lead times of six weeks or more – if they could quote a firm lead time at all – for a component that they needed there and then.

Costs up, time wasted
It may be that your design can accept an available alternative to the delayed or unavailable component. However, the alternative will typically be a more feature-rich version of the one you originally specified, and therefore more expensive. You’ve probably wasted hours trying to track down your preferred part, and now your project costs are up as well.

Some seven years ago I sold some Cisco Port Adapters to the largest telco in the UK at the time. They weren’t available in the UK at the time, but I tracked some down in California. The only way I could make even a small margin on the sale was to sell them at global list price: no discount whatsoever. The customer paid it.

I cannot, therefore, over-state the case for investing a small amount of time, up front, in researching the availability of the components you are considering specifying for your project. This can be as straightforward as a quick phone call to your reseller or distributor, to ask if are there any issues with current lead times on your proposed kit list.

It may well save your sanity, as well as your project.

Check out next months issue for more exciting tips to help you make the most of your economic situation and ensure a secure and efficient networking infrastructure.

David Mayberry of Go Communications Systems Ltd (www.gocomsys.com) provides us with maybe one of the most important tips in his series: Tip #11: Buy end of life products refurbished.

When Refurbished Network Equipment is Better than New

When the time comes to replace any network equipment, the manufacturer will always recommend that you buy the network equipment’s direct replacement – brand new, of course. If you’ve read a few of these money-saving tips, you may not be surprised to learn that there is a better way.

It’s just a matter of signing on the dotted line, then, isn’t it? Well, no. There’s a small complication. The model you’ve set your heart on is due to be replaced by a new model, due to hit the showrooms next year.

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So, do you go ahead and buy the current, end-of-life model at the asking price? I wouldn’t advise it. At least, not until you’ve checked out its availability second hand or at discounted prices from other showrooms. After all at some point in the future you’re going to want to either trade it in, or sell it on. You want to make sure you’ve bought it at the best possible price, or you’re kissing your hard-earned money goodbye completely unnecessarily.

Substantial Savings on Network Equipment

The same principle applies to your network equipment. Substantial savings can be made, way in excess of those that you could have made on the car. Virtually all network equipment manufacturers have their futures planned out in detail – the keen eyed can often spot network equipment which is about to be made end-of-sale, but for which support will continue for several years. Buying such network equipment products refurbished rather than new can save you thousands.

Of course, making such forecasts takes time that many do not have, but reference to manufacturers’ websites will reveal which network equipment products have already been declared end-of-sale. Such information is updated daily, so, before making any acquisition for your network, check to see if the network equipment you’re about to order is on the manufacturer’s end-of-sale list. If it is, it’s likely you have the opportunity to make some serious savings.

Sit Behind the Curve

While some network managers buy the newest network equipment to minimise depreciation at resale, others don’t have the time or inclination to research the next big thing, preferring to seek savings through old fashioned cunning and common sense. Sitting ‘behind the curve’, they purchase network equipment which is almost, but not quite, at the cutting edge.

With a little careful planning they can build a near-perfect solution, which, being a year or so behind the curve, will already have suffered the bulk of its depreciation – and had its bugs worked out.

This is a simple strategy for saving money. You can build a network which is for all practical purposes state-of-the-art – fully up to date on the software front and virtually so on the hardware front – at a saving of some 25% per annum.

A Canny Customer

One of my canniest customers always waits until any new piece of network equipment has been in the market for at least 12 months before considering installing it – and then they often choose to buy it refurbished. Their preference is always for the market leader, for support reasons, but they would never contemplate using brand new, recently-released network equipment. They understand the need to wait to see if problems arise before committing to new network equipment.

A well-known and highly respected company, they know exactly what they’re doing on this front. When the manufacturer declares a network equipment product end-of-sale, there will be a period, often as long as five years, during which the network equipment will still be supported. In just twelve months’ time, the network equipment will only be available refurbished, so they choose to purchase refurbished right away, enjoying the financial benefits immediately.

Take the time to research end-of-life network equipment, and consider buying refurbished instead of new. You could save yourself a heap of trouble, as well as a fat chunk of budget.

It seems that the hottest rage now is touting your company as being “green!” Whether this includes having a footer on each e-mail that states: “Please be responsible and only print this e-mail if necessary” or printing brochures or advertisements in green or on green paper, we all want to make a connection to “recycling.” Green is in!

Is this a bad thing? Not at all!! Whatever it takes to raise awareness on the benefits of technology recycling can only be a good thing. Regardless of what a company’s recycling efforts are in terms of recycling consciousness, the fact remains that as more companies participate in technology recycling, it benefits the environment as well as our businesses.

A Challenge to Traditional Technology Recycling

The challenge in technology recycling is the new face that is put on the term “recycling.” We used to simply see the word “recycle” and immediately think of physically dis-assembly of products. Metal goes in bins with metal, plastic with plastic, etc. For traditional technology recycling companies or service companies that pickup equipment from end users and provide the removal and actual technology recycling services, this is a good business. These companies provided a technology recycling service that benefits companies as well as help their own bottom line.

Today, the term “recycling” has added a new dynamic in technology recycling. Today, technology recycling companies are putting greater emphasis on re-use as that “final arrow” of the three green arrows associated with recycling. This has allowed more companies to add technology recycling to their portfolio as well as provide another service to their company’s offerings.

This new dynamic of technology recycling has benefited us as an industry as reuse continues to be one of the primary sources of the products for us all. Whereas before, our customers were reticent to release some of their technology for resale, now they are encouraged to do so by their management. For some, the reasons are related to “Green Initiatives” and others are motivated by returned capital, either way our businesses benefit.

Most secondary market resellers who receive whole units in their locations will determine based on their business model whether or not the units should be put back into the marketplace as whole units or torn down for parts. Both sale models achieve the same goal; using proper technology recycling or reuse to keep the equipment out of land fills while creating a revenue stream to the selling company. Very rarely does a business initiative and a moral imperative meet on an equal scale.

Education benefits of Reuse:

As technology needs increase in the not for profit or education entities throughout the country, we continue to see state funding for K-12 schools decreasing significantly. If we want our children to grow up understanding the benefits of utilizing technology, which is a necessary component to educational excellence, we need to find a better way to outfit our schools with affordable technology choices. Technology recycling and more importantly reuse is the answer.

Systems that come off lease in Corporate America still have some years of use left in them and can be utilized in our schools across America. A fifth grade elementary student learning Excel or a seventh grade middle school student putting together his first Power Point presentation can certainly do this on a P4 3.0 system and will not see any real benefit from using the latest system in the marketplace.

This is another excellent opportunity for reuse versus traditional technology recycling. There are a network of companies that work under the strict guidelines of Microsoft and their Microsoft Authorized Refurbisher program allowing these licensed companies to install and test an operating system for systems sold to academic institutions and not for profit organizations.

The Partners in Learning program increases the amount of available systems for these entities at the same time decreases the number of systems that might have been left in storage in Corporate America’s warehouses or in landfills across the nation. This is another prime example of where that last arrow “reuse” benefits everyone including our industry, cuts down on electronic waste and benefits our collective children. Again, we see a business initiative meet a moral imperative.

As you peruse through PowerSource Online’s magazine or website, you will find numerous companies that provide technology recycling and remarketing services. These companies provide a cost savings for customers that no longer have to purchase new technology to replace older equipment with quality parts that increase their technology’s usefulness. In addition, these companies are helping our environment by utilizing that “last arrow” in the technology recycling chain……reuse.

]]>Refurbished Printers in Demandhttp://www.powersourceonline.com/magazine/2009/12/refurbished-printers-in-demand
Tue, 01 Dec 2009 12:00:20 +0000http://www.powersourceonline.com/magazine/?p=1070Everything Old is New Again: Refurbished printers continue to be a valuable option for businesses

By: Lorrie Delk Walker

There is a growing trend of businesses shifting to managed print services, and with that change has come an increased desire among print management services companies to purchase refurbished printers.

Refurbished printers have a host of benefits to the print management services companies and the companies that have switched to the service, says Lance Lansing, director of sales and marketing with Global Printer Services (www.globalprinter.com) in McFarland, Wisc.

Managed Print Services- A Brief Overview

Managed print services is a term that refers to oversight of printers, copiers, fax machines and multi-function devices in a collective manner. This service often is outsourced to a company that specializes in this area.

The switch to Managed Print Services typically begins with a Managed Print Services company offering a complimentary audit of a company’s printing activity. The Managed Print Services company uses the audit to develop costs on toners, repairs and other related items.

In the next phase, the Managed Print Services company assumes control of the fleet and provides all of the supplies, repairs and necessary maintenance. Next is a concerted effort to streamline printing tasks to ensure that all equipment is being used efficiently and at an optimum production level.

The final stage- typically the stage where refurbished equipment is introduced- is enhancement. In this stage, the Managed Print Services company works to increase the fleet’s capabilities and improve efficiency through possible equipment upgrades, efforts to improve document workflow, and document management.

Refurbished printers often come into play at this stage because many Managed Print Services companies prefer legacy printers due to their reduced cost and the availability of replacement parts and rechargeable cartridges, Lansing says.

A big reason businesses turn to Managed Print Services is to take some pressure off of their information technology departments.

“I read a statistic once that said about 50 percent of calls to IT desks are password resets or printer problems,” Lansing says. “(Managed Print Services) does take a lot of work off the IT department.”

Benefits of Refurbished Printers

Refurbished printers is an area where Global Printer Services enters the equation. The company sells refurbished HP LaserJet printers, often to Managed Print Services companies.

Managed Print Services companies work to “right-size” businesses into a more uniform printer inventory, Lansing says. That can include consolidating printers into work groups or replacing an existing printer with another model that is cheaper to operate and repair.

The Managed Print Services companies ultimately seek to keep down the cost per page in an effort to reduce overall costs for the business and to increase their own profit margin.

“A lot of our customers are the Managed Print Services companies and the service companies that support them,” he says.

They turn to Global Printer Services because of the initial investment cost savings provided by refurbished printers. Managed Print Services companies don’t have to worry if the printers are on back-order from the manufacturer.

“HP is currently back-ordered on a ton of new printers,” Lansing says. “We mainly deal in discontinued items.”

Using discontinued legacy printers is cheaper because it’s easy to find replacement parts for them and it gives companies the ability to use recharged toners and ink cartridges, which are cheaper than purchasing brand new consumables.

Legacy equipment also has been around long enough for Managed Print Services companies to know what their exact costs will be on the actual printer itself and its maintenance and repair costs- almost down to the page, Lansing says. For example, they know how many pages they can get out of a toner, how much replacement rollers cost and how many service calls they will have to make on that unit.

“When a new model comes out, that information isn’t immediately known, and consumables are expensive initially because there are no refurbs available,” he says.

Buying refurbished equipment also means not having to deal with a large manufacturer’s warranty department, which can be a hassle. Manufacturers’ help lines can make it difficult to reach a real person and often when callers get to an actual person, they are not in the U.S. and communication can be difficult. Other times, help desks walk the caller through a self-diagnosis process, which can end up being time-consuming.

“It’s easier to get a warranty issue taken care of from a customer service-based smaller company,” Lansing says.

As Good As New

Global Printer Services builds value into its refurbished equipment by providing a one year warranty on parts, Lansing says. The company also fully explains the refurbishment process to customers.

“We don’t take an end-of-life, off-lease printer and send it back out,” he says.

Instead, the company thoroughly inspects each printer and replaces high-wear parts including rollers, separation pads and fuser assemblies. Machines are cleaned thoroughly and faded plastic panels are painted to look as good as new.

Businesses often can’t tell if the refurbished printers the Managed Print Services company has brought in are new or used, Lansing says. And at the end of the day, whether it’s new or used doesn’t matter. The client just wants to know that the equipment works properly and can be repaired quickly if it breaks down.

Telecommuting is possible and successful because of the increasing sophistication achieved by all the modes for communication, including telephones, cellular phones, computers and fax machines. Recent trends in telecommuting include conference calling, Voice over Internet Protocol (VoIP) and videoconferencing.

What isTelecommuting?

For those who may not understand, Telecommuting refers to a “work from home” model, in which employees do not need to travel to a centralized office and work during specific hours. This form of employment is also known as e-commuting, e-work or working at home.Although thework arrangement is generally perceived as working from “home,” one could be working from varied locations (including cyber cafes) across the globe.

*Video:new advertising opportunities on powersource online

The rapid penetration of the Internet and increasing bandwidths have encouraged telecommuting among businesses around the world and this trend is growing at an exponential rate. Major companies, including eBay, Goldman Sachs, Yahoo and Principal Financial Group, encourage telecommuting and a flexible working environment.

Advantages ofTelecommuting

There are several advantages of telecommuting – for the employee, for the employer and for the society.

Advantages of Telecommuting for the Employer

Building a diverse labor pool: Telecommuting helps to acquire employees from across the globe. This helps to form a rich pool of people having specialized knowledge.

Global reach: With technological advancements, markets are not restricted by geography.

Cost saving: Telecommuting helps a business control costs. This includes the costs associated with setting up a bricks and mortar office, acquiring furniture and other physical assets and incurring overhead expenses, such as electricity bills and rent. According to a report by Undress for Success, an online resource site, companies in the US were able to save over $260 billion annually by adopting telecommuting.

Facilitates organizational alliances: Organizations from different parts of the world can now collaborate for a project or a business deal without incurring huge travel and hotel expenses. The communication is faster and more coherent than traditional electronic means.

Advantages of Telecommuting for the Employee

Saves time and money: Telecommuting eliminates the daily commute to and from the office. This helps to save time and money.

Healthier family life: Telecommuting creates more time for recreation and for the family, helping people to strike a better balance between their professional and personal lives.

Advantages of Telecommuting for the Society

Equalization of opportunities: Telecommuting facilitates the employment of marginalized groups in the population, such as single parents, the physically challenged and people living in remote regions.

Environmental benefits: Telecommuting helps to control air pollution as it reduces vehicular commute, which creates a large amount of carbon dioxide emissions. It also helps to reduce traffic congestions and fuel consumption.

Face Time: Complete Communication

The need for face time in businesses is constantly questioned by the advocates of telecommuting. Teleconferencing, webinars (web seminars), videoconferencing, emails, cell phones, voicemail and instant messengers are increasingly replacing physical meetings and face-to-face conversations.

Despite phenomenal technological advancements, face time interaction still has an edge. This is because communication is complete with face-to-face conversations. Facial expressions and body language act as guides for judging various parameters, such as urgency or intensity of a situation. Face time interaction deploys all the senses – sight, sound, feel, taste and smell – to complete the communication.

Face Time: Why?

Even though telephone and the Internet create some degree of personal touch, they can not entirely substitute face time and face-to-face communication. Hence, for a business to prosper, it is crucial to have some degree of face time. There are a few important advantages to having this face time…

When people smile at each another, shake hands, share a joke or eat lunch together, they form a bond that cannot be replaced by electronic communication, they build a relationship. Face time helps to strengthen employer-employee relationships and fosters team building. Training and mentoring become more effective, with relationship building. Face time also facilitates verbal acknowledgment and recognition, which provide an unmatched sense of value to the employees.

Having a proactive approach to face time communication helps to judge the attitude of employees, assess their confidence level as well as identify activities they are uncomfortable with. This allows a company to take necessary actions well in time.

The absence of face time could create a sense of isolation among employees. This is fueled by our sense of belonging. They may not be as driven or work to their maximum potential towards achieving organizational goals. Face time helps to align personal goals with organizational goals and encourages employees to take ownership of the tasks assigned to them.

Face time builds credibility. It also enables one to judge a tricky situation better by reading into facial expressions and body language. Moreover, it is easier to be stern or even say “no” via email. However, present and prospective clients are much more pleasant during a face-to-face conversation.

Greater time efficiency is also created with face-to-face communications. Face time also facilitates quick decision making regarding smaller tasks. A ten-minute meeting daily can help the team stay in touch with the bigger picture and therefore perform better.

This personal interaction also removes the threat of technology bottlenecks. As we all have experienced, the use of technology is vulnerable to failures and breakdowns. It is also subject to the loss and misuse of information and security. Face time cuts these issues out

For those companies who like to see what their employees are doing, face to face time gives them better control. In the absence of supervision, as in telecommuting, employees may become more callous.

Face Time: A Survey

RoperASW and TANDBERG conducted an international study in 2003, surveying approximately 625 business professionals across the US, the UK, Norway, Germany and Hong Kong. The survey revealed that communication other than face-to-face discussions lead to:

Confusing conversations, hindering sound decision making (81% of the respondents said that face-to-face communication was better at reducing confusion)

Low trust among all parties (90% of the respondents believed that face time was best at establishing a high level of trust among all parties)

Low accountability (75% said face-to-face meetings were better at making people more accountable)

Missing information (the study found that only 27% of people read complete emails)

Even though in the fast paced business environment, face time can not always be effectively incorporated. The long-run success of a business depends heavily on a proper intermix of both telecommuting and face time.

]]>IT Service Contractshttp://www.powersourceonline.com/magazine/2009/12/it-service-contracts
Tue, 01 Dec 2009 12:00:15 +0000http://www.powersourceonline.com/magazine/?p=1100Creating the Best IT Service Contract

By: Kristin Masters

Because virtually every business relies upon a complex infrastructure of hardware and networking components, computer consultants have great opportunities to grow through long-term relationships with clients. They also have significant latitude in deciding how to structure their service contract agreements. While many consulting businesses opt to sell prepaid time blocks or subcontract with a national service organization, the most profitable option is contracting a long-term IT service contract.

Using Prepaid Time Blocks

Prepaid time blocks are an attractive option to many fledgling computer consulting firms, because they provide a step up from one-time service calls for low-level repairs. Essentially clients buy a certain number of hours, and call the consulting company for all their IT support needs, until the time runs out. Often consultants will offer discounts for buying a higher number of hours.

This IT service contract does result in up-front payment, which is attractive for start-up companies or during economic downturn. However, relying on prepaid time blocks has some notable shortcomings:

Once the prepaid time block runs out, the client is essentially the same as an inactive customer or a new prospect. For the client, there is no discernible value in continuing the relationship.

Clients usually call only when they have a problem. While this might not seem like a disadvantage, it means that an IT consultant does not get much opportunity to troubleshoot or improve clients’ IT infrastructure.

The prepaid time block does not really constitute–or foster–a long-term relationship with a client. Since time and scope of service are limited, the consultant has little chance to create and demonstrate the value of an on-going partnership.

Thus the most significant disadvantage of prepaid time blocks is that they do not promote the long-term relationships. These relationships are critical to long-term growth for every IT consulting firm.

Subcontracting with National Service Organizations

A sort of intermediate stage between prepaid time blocks and an IT service contract is subcontracting with national service organizations. Firms generally choose this model because it offers greater financial stability and removes some of the pressure to obtain clients. While this form of subcontracting reduces instability and time spent on sales, it also has numerous detractors:

National service organizations require time- and cost-intensive training. Even though most service calls will be for low-level hardware repairs, subcontractors are still required to learn about the latest technologies and platforms.

Clients who use this service contract often need only minor hardware repairs. It is not cost-effective for a client to invest money repairing a $400 desktop computer. Thus they are unwilling to pay competitive rates.

That unwillingness is reflected in the negligible profit margins and low labor allowanced granted by national service organizations. The organization may allow only $100 for a specific repair, regardless of whether it requires two hours of work, or five.

To compensate for reduced profit, companies must complete as many calls as possible each day. Not only does that undermine the consultant’s ability to build rapport with clients, but it also results in time wasted during transit.

Ultimately, although subcontracting with a national service organization may seem like an expeditious method for gaining a steady stream of revenue and clients, the returns are actually much lower. These relationships often sacrifice quality for quantity.

Building Relationships with Service Contracts

Long-term service contracts are key to computer consultants’ success because they provide both steady revenue and promote the formation of long-term relationships with clients. By enabling consultants to become proactive members of their clients’ IT personnel, these sustained partnerships form the cornerstone of successful consulting firms’ business strategy. Service contracts therefore offer IT consulting firms the best value of any business model.

Service contracts offer the ability to provide more comprehensive, high-level services. Instead of simply fixing hardware, consultants can focus on functions like networking or data storage, which will improve their clients’ technological infrastructure.

For clients, having a service contract means a single point of contact for all IT concerns, including troubleshooting, upgrades, software licensing, data protection, and system maintenance. This factor offers the IT company a way to build rapport and present a streamlined, “user friendly” image to each client.

Consultants get compensated for time, rather than the repair, ensuring favorable profit margins and improving customer service. Furthermore, the provider controls hourly rates and scope of services offered.

Therefore consulting firms based on service contracts can easily enhance the quality of their clients’ experience and computer systems, demonstrating greater value and increasing the likelihood of continued partnership.

Long-term service contracts provide the ideal blend of profitability and sustainability. They allow consulting firms to capitalize on relationships to benefit both consultant and client.

Maximizing the Service Contract

A well-written service contract, then, is indispensable to IT consulting firm that wishes to flourish. Although creating the service contract and the supporting materials may require an initial investment, the return is worth the initial expense. Crafting a service contract requires careful thought about balancing client value with profitability. Consultants who decide to use service contracts should consider several factors:

Feasibility of fixed-fee service contracts: While it may be easiest simply to charge a flat rate per month, it can often be difficult to accurately predict a client’s needs. It is critical to select a fee structure that ensures fair compensation for clients, but offers value to clients.

Creating a range of service products or packages: Instead of a one-size-fits-all approach, consultants can offer different service contracts that are tailored to different industries or businesses. This does not mean creating a new package from scratch for each new client, but rather offering several service levels from which clients can choose.

Adding value through customer service: In addition to providing expertise, IT consultants can build value through guaranteed speedy response times or discounts on after-hours and emergency service.

Incorporating proactive services: Completing upgrades and system maintenance is an excellent method for consultants to show that they are vested in their clients’ success and growth.

Building comprehensive and cohesive support materials: Before clients even see the physical contract, they will want to review professional, consistent marketing and informational materials. Give the sales team the tools they need to complement outstanding IT service.

Legality: As always, it is important to have any legal document reviewed by both an accountant and a lawyer, to ensure that it adequately protects both parties and is legally binding.

Initiating a thoughtful and comprehensive service contract program is the first step toward sustained success through mutually beneficial long-term relationships. Instead of focusing on the short-term gains obtained through prepaid time blocks or subcontracting with a national service organization, service contracting enables sustained revenue and relationship building.

ISO 14001 was first released in 1996 and is the first global standard for organizations that are seeking to proactively reduce environmental risk and costs to the organization and their customers. In 2004, ISO 14001 was updated to be complementary with the ISO 9001 quality management system standard, this update was based on inputs from many sources, both regulatory and non-governmental agencies. The revisions were made to provide valuable insight to areas of the standard that were not adequately addressed in the 1996 revision.

With the increasing amount of scrutiny toward organizations to become environmentally friendly, the ISO 14001 Environmental Management System (EMS) standard demonstrates a commitment to the environment to shareholders, customers and regulatory agencies. ISO 14001 compliance and/or certification will provide a competitive advantage by demonstrating that the organizations environmental processes are effectively managed, continually improving, and top management is committed to the EMS processes.

Organizations that have embraced the ISO 14001 standard and have implemented the requirements, it has enabled them to structure their good environmental processes, encourage recycling and pollution prevention programs, and reduce risk to the environment and to the organization through understanding a structure approach to legal compliance. Organizations have seen improved performance in the organization making it more efficient and productive.

According to Lead Auditor Cassie Ridenour (Smithers Quality Assessments, Inc.) “One other value that ISO 14001 standard offers and is not known by most organizations is the role of the system registration in the eyes of regulators such as the US EPA. For example the US EPA, has a policy of deterrence of regulatory noncompliance by making fines high and the possibility of corporate leaders serving jail time to discourage violations. A sentencing formula is used that considers the implementation of an environmental management system, i.e. ISO 14001, as a mitigating factor, so, if a fine is imposed, it may ultimately be reduced. The environmental management system provides a structure for the management of pollution prevention (P2). Pollution prevention programs provide cost savings, reduced legal liability, improved corporate image, and improved worker safety. A well made environmental management system will pay for itself. A good environmental management system incites constant attention in the areas of waste reduction, motivates pollution prevention and regulatory compliance, and inspires employees to consider the environmental costs of their activities. As times and circumstances change, energy saving projects that were not previously economically feasible may become so; product and packaging options may also change. Certainly the world market and attitude about landfill waste, led by the European Union, have changed dramatically over the decade since ISO 14001 was released.

The main concern with environmental management is with two things: risk and money. Evidence from EMS certification indicates that when organizations consider the monetary and risk factors of their working environments, the benefits can be tremendous”. The following case studies from Quality Digest’s article “ISO 14001 Case Studies” illustrate this point.

Electrolux (formerly Frigidaire)

Electrolux Home Products (formerly Frigidaire) in Greenville, Michigan, began its quest with ISO 14001 in 1999 initially saving approximately $70,000 in fines for a spill by following the EMS documented procedure.

The spill was caused by a contractor on-site and part of the EMS procedures requires all contractors to be licensed for whatever activity they’re conducting on the company’s site. The licensed contractor spilled raw sewage it was pumping out of an underground tank. In the state’s Dept. of Environmental Quality’s investigation, the DEQ determined that Electrolux had taken the correct precautions to contain the spill resulting in Electrolux not being fined. The DEQ sent a letter to Electrolux stating that if it hadn’t proved it had procedures in place to prevent such an occurrence they would have been fined.

Additionally Electrolux reduced costs through meeting objectives and targets set within its EMS, particularly in the area of solid waste materials. Prior to ISO 14001, scrap materials were transported 45-miles, three times a week—incurred significant labor, vehicle and fuel costs. But by rethinking the process and installing a compactor, the company significantly cut the volume of scrap being transported. Disposal trips are now made once a week, a change that saves fuel and labor costs and reduces equipment wear.

Sony

Sony Corp. became certified to ISO 14001 in 2002. The certification includes non-manufacturing operations in North America, including Sony Music Entertainment Inc., Sony Pictures Entertainment, Sony of Canada Ltd. and Sony Electronics Inc.

Sony pursuit of registration was a companywide commitment to the environment, to improve the controlling of documents and gain further momentum for continuous improvement. Sony’s objective was to preserve and enhance the environment and protect the safety and health of their employees, customers and neighbors,” says Mark Small, vice president for corporate environment, safety and health issues (Sony Electronics).

The environmental efforts of SCA companies include recycling, energy conservation, waste reduction, local outreach programs, and health and safety issues, such as fire and emergency preparedness. The company has reduced its recycling rate by more than 95 percent at 17 sites, introduced products with lead-free solder and halogen-free printed wiring boards, and reduced and/or replaced its packaging materials.

Since the Pitman, New Jersey site (500,000 square foot manufacturing center for prerecorded digital media) became registered to ISO 14001; the company has established management reviews, objectives, and environmental initiatives and has implemented related improvement programs quickly and efficiently.

With any system there are costs associated with implementing an ISO 14001 EMS. If this investment is made in the EMS, it is important for the organization to derive a benefit and a return on investment. Four things should be considered for organization considering ISO 14001 certification.

An ISO 14001 compliant or certified system must bring value by identifying and reducing the potential aspects and impact that can result from the company’s activities. This reduces the possibility of the company creating an environmental impact and minimizes the magnitude of the impact. Improved processes, and increased productivity, reduced scrap and rework result in increased profits.

From the perspective of sales and marketing, a determination needs to be made on whether certification would make a difference? Would certification to ISO 14001 help sway customers decision process for supplier selection? Would certification differentiate you from the competition?

Are any of your major customers requiring you to certify or be compliant to ISO 14001 to continue being a preferred supplier? These again are questions that need to be asked by Sales on a continual basis.

Are regulatory requirements requiring you to have ISO 14001 certification? Certification will not absolve the company from complying with federal, state and local environmental requirements. Some states are offering incentives to companies implementing an EMS or becoming certified to ISO 14001 such as reduced inspections, on-site technical assistance, and even modifications to state or federal regulatory requirements.

Answering these four questions should provide a basis on whether ISO 14001 should be part of the organizations plans. If the decision is made to put ISO 14001 in the forecast, it is important to take it on at your own pace. Don’t make the mistake and wait until your primary or best customer, government agency gives you the “or else” ultimatum and you have to be certified in three months.

How Do I Get Started?

For information on getting started with the ISO 14001 certification, contact K&S Enterprise Quality Associates at www.qualityassociates.org.

In the European Union (EU), the recycling of electronic waste has become an everyday practice. The electronic waste is collected at designated points; either by local councils, or other institutions. Various transport companies deliver the electronic waste to central recycling facilities where it is then processed and separated into valuable fractions.

Unfortunately the situation in North America is different: In the US, it is estimated that 80 percent of the electronic waste collected for recycling is being exported to Asia or Africa, or being sent to domestic landfill sites. In this article I hope to explain the effects electronic waste, including IT equipment, is having on our environment and what companies such as GEEP and others are doing to help save our planet and its people.

Geep Global

Why are Landfills an issue?

The problem is somewhat like tipping a domino.

In a landfill situation, not only are the valuable metals such as copper, gold, silver, palladium and platinum lost; but rainwater washes the metals, particularly the heavy ones, out of the electronic waste and into the soil or the groundwater, and that is disturbing. This presents a considerable health hazard for both people and animals, which ingest these heavy metals via the water supply.

We must also remember that we require these metals for a large percentage of new manufacturing. If we lose the metals through sending electronic waste to landfills, then we must mine for the metals through traditional means.

For example, it requires approximately 200 metric tonnes of copper ore (rocks containing copper trace) to be mined and processed to produce one metric ton of copper. On the contrary, when electronic waste is processed, it requires only 14 metric tonnes of electronic waste to make one metric tonne of copper. This statement also holds true for much of the other precious metals identified above. Think about this for a second: Avoid the landfill, generate useful raw materials, and reduce mining.

Exportation of Electronic Waste

Despite the amount of media coverage, the formation of action groups, and state and provincial legislation; containers of non-functioning electronic waste is routinely exported by developed countries to developing ones, often in violation of the international law. Inspections of 18 European seaports in 2005 found as much as 47 percent of waste destined for export, including electronic waste, was illegal. In the US, it is estimated that 50-80 percent of the waste collected for recycling is being exported in this way. This practice is legal because the US has not ratified the Basel Convention. (Source Greenpeace)
The US and Canada are the first and second biggest perpetrators of this practice, despite the many television & radio broadcasts and the print media that depicts some of the negative effects to society of sending electronic waste overseas. I would doubt that any of us would argue this point; so why do these practices continue?

Simply speaking, overseas electronic waste recycling costs little to execute, the basic licensing and permits are nonexistent, fair competition does not exist, and there is little to no infrastructure for health and safety practices that are policing the conditions that workers are involved in. While this practice is illegal in Canada it still exists. Unfortunately in the US, while the practice is frowned upon, it is not illegal.

So how does Electronic Waste affect the IT Industry?

IT gear (Desktops, Laptops, Servers, Routers) are all subsets of electronic waste. While many OEM & Carriers have Investment Recovery programs that address the product they build for the North American markets, some of these programs still fall short when addressing the final destination of that old server, laptop, or other electronic waste.

EU Legislation makes the collecting and recycling of electronic waste compulsory and regulates both the amounts of electronic waste that have to be collected and also the degree to which the electronic waste has to be reprocessed. IT gear cascades into those criteria. To sell into the EU the OEM must have a qualifying end of life disposition program.

For North America, similar legislation exists in certain states within the US and many provinces within Canada. The programs also have differences, some slight and some major. Funding for processing and collection of electronic waste is a concern. The consistency is not at an acceptable rate as it is not yet federally governed and not internationally recognized throughout the continent. These inconsistencies create loopholes, whereas exportation of electronic waste becomes easier.

Regardless of the legislation we North Americans do have options. Producers and users from an OEM, distributor and end user perspective need to understand their responsibilities when they export and send electronic waste to landfill.

We have companies in North America that execute processes that are economically and environmentally positive, who have closed loop processes and that can and do compete with our EU colleagues.

The problem of transportation costs

North America is a big continent, Europe can easily fit into the US or Canada. In Germany the greatest distance between north and south is roughly 1200 kilometres. Electronic waste can be transported to any one of several central points for reprocessing with relatively few problems.

In the North America, however, the distances involved play a far more vital role. In the US and Canada, distances can be more than 4,000 kilometres apart. Under these conditions, material logistics and transportation costs can be major factors that affect profitability when it comes to recycling electronic waste.

How we positive economical and environmental impact?

At GEEP the goal is to offer customers multiple customized Investment Recovery solutions

As an ex OEM Investment Recovery International leader, I placed emphasis on using companies that offered multiple solutions to excess, obsolete, out of service materials, and electronic waste. Why manage many vendors when you can manage a few?

At GEEP we have the same logic. Obviously it is impossible to be all things to all people, but we work with clients to identify opportunities for improvement and co-develop processes that have positive economical and environmental impact.

So how do we execute? We execute through partnerships with companies in the IT industry through master service agreements or joint venture opportunities. The development of a network or footprint is necessary to try to reduce transport. Regional Electronic Recycling Processes (ERP) has to be established to take advantage of the material flow required to justify the process.

GEEP believes that we need to squeeze every last value out of the product if we are going to keep customers interested in our process. To ensure this, our focus is on the development of the services offering.

Once we have collectively determined with the customer that the service value has been exhausted, our end-of-life recycling process kicks in.

GEEP’s recycling process

In simple terms electronic waste is fed into the ERP I system via series of metal conveyors. The ERP I chamber has two large chains (similar to anchor chains on a ship) that spin at 2400 rpm. As electronic waste enters this chamber the material is fragmented into multiple pieces

The electronic waste is then sieved and the larger pieces transported on a sorting belt. The valuable parts of the electronic waste such as transformers, circuit boards containing precious metals or copper and stainless steel as well as large pieces of plastic are firstly sorted manually from the stream of material and then chuted into boxes or bins for further processing.

Valuable non-ferrous particles are then separated from those pieces, smaller than 50 mm, using an eddy current technique. The ERP I process separates approximately four tons of electronic waste per hour.

After the electronic waste has been subjected to the initial processes, approximately 20 percent of the original material that mainly consists of copper wire, pieces of circuit boards and composite material that remains in a non commodity state is forwarded to the ERP II process and separated into highly concentrated metals fractions.

ERP II for breaking down materials

The belt overflow contains a high percentage of valuable metals, which cannot, however, be separated in their current form. Copper wire in particular tends to get caught up and form tangled lumps. The ERP II process further manipulates and fragments the copper-bearing materials with a heavy-duty hammer mill to form balls from the copper wire. This type of balled material can then be easily separated into highly concentrated metal fractions and practically metal-free plastic fractions using gravity separation methods.

The remaining fine fractions and dusts can then be further processed by means of electrostatic separation techniques, making it possible to recover the remaining metals. Finely sieved fractions, and particularly dusts, still contain large amounts of valuable metal. Both copper and precious metals are often found among these fine fractions. It is essential to regain these metals in order to optimise metal recovery and the aggregate added value.

GEEP uses Hamos KWS electrostatic separators for this purpose. The material is placed a rotating metal roller, charged with high voltage and selectively discharged on the earthed roller. Metals then fall off the roller while plastics continue to adhere to it, which are then brushed off at another point. Using this method, multiple-stage devices are capable of separating up to 1,000 kilograms of material per hour.

The final product results in a clean metal fraction and a clean mixed plastic fraction.

In the last three years GEEP has invested more than twenty million dollars in the development of proprietary software and hardware that is the ERP NANO fuel system. This system leads to no landfill of valuable metals and no export of electronic waste; it is a truly viable option

Why would GEEP spend all this effort and money on all these processes if exportation still happens?

Sleek, stylish, and convenient, laptop computers have become ubiquitous in libraries, airplanes, and even local diners. But will laptops ever completely replace their robust yet less glamorous desktop counterparts? Despite assertions that the desktop is obsolete, it continues to serve certain market segments much better than laptop computers. Furthermore it is possible that both laptop computers and desktop systems will eventually be edged out by new technology that blends the advantages of both devices.

Laptop Computers Gain Widespread Popularity

Also called notebooks, laptop computers made their modern debut in 1981. The first model weighed 24 pounds. Conceived as a tool for business executives, laptop computer technology evolved over the next three decades. In the last few years, laptop computer sales have steadily grown:

In 2001, Toshiba ceased production of desktop models, in anticipation of the laptop computer trend.

From 2006 to 2008 laptop sales grew 60%. Dubbed the “Year of the Notebook,” 2007 saw a 21% increase in laptop computer sales, while desktop sales decreased by 4%.

By 2011, the IDC predicts that laptop computers will represent 71% of consumer computer purchases.

Laptop computers have long been a logical choice in the business world: compact and streamlined, they are extremely easy to transport. While older laptop computers had short battery life and less powerful processors, innovations have improved both, making laptop computers a viable replacement for desktop PC’s. Now, the number of cores remains the only difference between laptop computers and desktop systems. For the majority of users, that has little impact on performance, since most software does not leverage multiple cores.

As technology has improved, so have the prices of laptop computers. While the average cost of laptop computers used to be at least double that of desktop systems, that gap is closing with remarkable speed. In June 2008, NPD calculated that the average Windows desktop cost $550, a $2 increase from the previous year. Meanwhile, the average cost of a Windows laptop computer was $700. That price represents a $92 drop from 2007, and a $177 decrease from the previous year.

Current trends indicate that laptop computers will continue to gain a greater share of the market. Multiple factors indicate that they will likely dominate the market in the near future:

Laptop computers have become a sort of accessory. Their appearance can be customized to express individual style, and certain brands have even become status symbols. This tendency toward individually tailored technology is expected to increase as portable electronics proliferate.

Laptop computers will likely remain the currency of the business world. According to Business Travel News, business travel hit an all-time high in 2008. Coupled with the growth in telecommuting and remote access options, business mobility will bolster laptop computer sales and popularity.

People have an ever-increasing number of methods for “plugging in.” Connectivity through WiFi and Bluetooth are already commonplace, and access to mobile broadband is on the rise.

Making a Case for Desktops

In the past, desktop PC manufacturers delivered significantly more memory and power. They were also much more affordable than laptop computers. Laptop computer users still battled short battery life. As technology marches forward, however, those gaps in performance and price are steadily closing. Accordingly, desktop systems have lost their definitive command of the market share.

Indeed, since the recession began, sales of laptop computers have remained strong, while those of desktop systems have mostly stagnated. Apple even saw a 20% decrease in sales of desktop systems since the start of 2009. Industry leaders speculate that part of the dip may be due to businesses’ holding off on corporate orders, which usually constitute a large percentage of desktop sales. While many predict that corporate entities will ultimately opt for laptop computers anyway, desktop systems still offer considerable advantages for both corporate and consumer use:

Desktop systems pose a significantly lower risk for theft. In April 2008, the Ponemon Institute found that laptop computer theft costs the average American company $49, 246 per year. That figure includes not only the cost of replacing the equipment itself, but also that of the data on the machines stolen.

As a corollary, desktop systems make more sense than laptop computers in fields where confidentiality is key. Medical practices and financial institutions often choose desktop systems, because it means employees cannot simply walk out with clients’ records and information. Similarly, desktop systems are preferable in retail environments.

Task-based workers, such as clerks, call center employees, accountants, and others who are tied to a workstation simply do not need a laptop computer. Many workers who fall into this category need only basic functionality, and can get away with a relatively low-performance machine.

For functions like computer programming and video editing, which require robust processing, desktop systems are still vastly preferable to laptops. Workers in these industries will undoubtedly continue to use desktop systems in the office.

Desktop systems can be built from the ground up, or easily upgraded, to include extra RAM, upgraded video cards, or additional CD/DVD drives. This feature is extremely attractive to consumers who heavily use multimedia or gaming functions.

For lower maintenance and replacement expenses, desktop systems are still the way to go. While the average laptop lasts three years, a desktop lasts five. Meanwhile, laptops tend to need more repairs, since frequent transport results in more wear and tear.

Desktop systems offer considerable advantages in specific industries and applications. In addition, they provide greater durability and cost effectiveness than laptops. While use of desktop systems may be more limited to specific market segments in the future, they are certainly in no danger of being rendered obsolete.

Hybrids Present Competitive Third Choice

As businesses continue to seek both portability and power, devices such as thin clients and virtual desktop systems will probably soon gain a greater share of the market. These devices are drive-less, and work by connecting to a central server for memory. They use less power and take up less space than traditional desktop systems, but provide the same level of functionality. Both compact and energy efficient, thin clients and virtual desktop systems represent an attractive alternative to both desktop systems and laptops, because they combine the best features of both.

As advancements in technology narrow the gaps in cost and power, it is likely that laptops succeed desktop systems in popularity. However, the niche applications of desktop systems will grant them continued relevance in the home and office.